ASIRI HOSPITAL HOLDINGS PLC (ASIR.

N0000: LKR
21.30) OPINION
FINANCIAL OVERVIEW FOR THE NINE MONTHS ENDED FY MAR 2015
Asiri Hospital Holdings PLC (“Asiri” or “the Hospital”) is a private healthcare provider and together with its subsidiaries has the highest
capacity of 660 beds in four hospitals, over 800 consultants and a total of 3,596 employees and also recorded the highest turnover in the 9M FY
Mar 2015. The bulk of the Group’s earnings and revenue is generated by Asiri due to its presence in the high yielding diagnostics segment with
an estimated market share of 60% in the market.

The Group’s revenue grew 9.75% in the Financial Year Ending March 2014 (“FY Mar 2014”) supported by a commendable growth of 76% in in-
patient increase and 98% in the out-patient growth. Revenue growth was relatively stable in the 9M FY Mar 2015 growing at 9.96% year-on-
year (“y-o-y”) to LKR 6.4 billion. We note that increasing competitive pressure had rendered slower revenue growth for other listed hospitals
such as Nawaloka Hospitals PLC and Durdans Hospital PLC.

The Group’s operating profit before depreciation and tax (“OPBDIT”) margin was stable at 32% levels in FY Mar 2014, declining slightly to
29.70% in the 9M FY Mar 2015. Pre-tax profits on the other hand had increased 31% y-o-y to LKR 1.37 billion in FY Mar 2014 supported
mainly by the easing of finance costs due to the prevalent low interest rate scenario.

Meanwhile the Group’s gearing ratio had worsened to 1.43 times as at end-March 2014 from 0.84 times as at end-March 2013. On the contrary
the debt levels reduced by end-December 2014, with the overall gearing ratio clocking in at 1.14 times; albeit still high in comparison to its
listed peers. In line with the reduced debt burden and the better financial performance the Group’s debt protection metrics had improved to
0.33 times as at end-December 2014 from 0.29 times as at end-March 2014. Meanwhile the Cash and cash equivalents to short term debt is
moderate in comparison with those of its peers clocking in at 0.68 times as at end-December 2014 as a considerable amount of the Group’s
short term debt had been settled.

OPINION
Although the financial profile shows an improvement, concerns are mainly on the comparatively higher debt position as opposed to other
counters in the hospital sector. The trailing PE ratio also compares higher than its listed peers. The dividend yield is higher than that of its peers
but comparatively lower than most other listed counterparts. The share price peaked in November 2014 at LKR 24; however, historically the
share price has ranged at LKR 9 –LKR 12 levels. The share price fluctuations within the past few months have been between LKR 20 and LKR
 24. A temporary rise in the share price might be witnessed due to declaration of dividends but investing at LKR 20 would be most preferable
and to optimize returns from this investment it would be best considered a long term decision.

Chart: Share price movement from April 2010 todate

Trailing PE
Nawaloka Hospitals PLC 28.18
Lanka Hospitals Corporation PLC 21.55
Asiri Hospitals 21.19
Ceylon Hospitals PLC (Durdans) 13.95

DPS FY Mar 2015

Nawaloka Hospitals PLC 0.06
Lanka Hospitals Corporation PLC 0.50
Asiri Hospitals 0.50
Ceylon Hospitals PLC (Durdans) 2.00

Dividend Yield
Nawaloka Hospitals PLC 1.94%
Lanka Hospitals Corporation PLC 1.09%
Asiri Hospitals 2.35%
Ceylon Hospitals PLC (Durdans) 1.82%

Source: Colombo Stock Exchange

Disclaimer The report has been prepared by Taprobane Securities (Private) Limited. The information and opinions contained herein have been compiled or arrived at based upon information
obtained from sources believed to be reliable and in good faith. Such information has not been independently verified and no guaranty, representation or warranty, express or implied is made as to
its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document is for information purposes only, descriptions of any company or
companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as, an offer, or solicitation of an offer, to buy or sell any
securities or other financial instruments.

Taprobane Securities (Pvt) Limited

No 10, Gothami Road
Colombo-08
www.taprobane.lk
Date: 11th March 2015
Asset Base (LKR Million) 2012/2013 2013/2014 9M FY Mar 2015 Funds From Operations Debt Coverage
Nawaloka Hospitals PLC 5,855.31 7,370.40 8,601.09 (Times) 2012/2013 2013/2014 9M FY Mar 2015
Lanka Hospitals Corporation PLC 4,367.57 5,096.15 5,610.07 Nawaloka Hospitals PLC 0.63 0.31 0.21
Asiri Hospitals 15,357.24 15,533.49 17,504.20 Lanka Hospitals Corporation PLC 5.27 6.00 3.82
Ceylon Hospitals PLC (Durdans) 4,930.88 4,935.77 4,947.66 Asiri Hospitals 0.35 0.29 0.33
Ceylon Hospitals PLC (Durdans) 0.59 0.53 0.14
Turnover (LKR Million) 2012/2013 2013/2014 9M FY Mar 2015
Nawaloka Hospitals PLC Group 4,222.90 4,299.00 3,380.16 Current Ratio (Times) 2012/2013 2013/2014 9M FY Mar 2015
Lanka Hospitals Corporation PLC 3,405.86 4,071.91 4,754.02 Nawaloka Hospitals PLC 0.70 1.13 1.40
Asiri Hospitals Holdings PLC 7,075.68 7,765.21 6,404.24 Lanka Hospitals Corporation PLC 3.11 2.44 2.27
Ceylon Hospitals PLC (Durdans) 3,830.37 3,961.27 3,027.09 Asiri Hospitals 0.50 0.49 0.70
Ceylon Hospitals PLC (Durdans) 0.74 0.72 0.72
Pre-Tax Profits (LKR Million) 2012/2013 2013/2014 9M FY Mar 2015
Nawaloka Hospitals PLC Group 455.09 295.96 127.677 Quick Ratio (Times) 2012/2013 2013/2014 9M FY Mar 2015
Lanka Hospitals Corporation PLC 438.96 743.51 529.90 Nawaloka Hospitals PLC 0.48 0.86 1.11
Asiri Hospitals 1,051.52 1,374.37 1,040.64 Lanka Hospitals Corporation PLC 2.80 2.19 1.89
Ceylon Hospitals PLC (Durdans) 330.64 289.60 254.35 Asiri Hospitals 0.38 0.37 0.59
Ceylon Hospitals PLC (Durdans) 0.47 0.44 0.42
Operating Profit Before Depreciation
Interest and Tax margins (%) 2012/2013 2013/2014 9M FY Mar 2015
Cash and Cash equivalents to Short Term
Nawaloka Hospitals PLC 20.18% 17.40% 15.61%
Debt (Times) 2012/2013 2013/2014 9M FY Mar 2015
Lanka Hospitals Corporation PLC 13.18% 17.07% 11.86%
Nawaloka Hospitals PLC 0.20 0.79 0.81
Asiri Hospitals 32.32% 32.34% 29.70%
Lanka Hospitals Corporation PLC 9.06 7.88 4.99
Ceylon Hospitals PLC (Durdans) 19.11% 17.46% 17.02%
Asiri Hospitals 0.08 0.08 0.68
Ceylon Hospitals PLC (Durdans) 0.17 0.07 0.10
Gearing (Times) 2012/2013 2013/2014 9M FY Mar 2015
Nawaloka Hospitals PLC 0.38 0.66 0.94
Earnings Per Share (LKR) annualised 9M FY Mar 2014 9M FY Mar 2015
Lanka Hospitals Corporation PLC 0.03 0.03 0.05
Nawaloka Hospitals PLC 0.23 0.11
Asiri Hospitals 0.84 1.43 1.14
Lanka Hospitals Corporation PLC 3.02 2.06
Ceylon Hospitals PLC (Durdans) 0.40 0.43 1.38
Asiri Hospitals 0.86 0.93
Short Term Gearing (Times) 2012/2013 2013/2014 9M FY Mar 2015 Ceylon Hospitals PLC (Durdans) 6.83 7.15
Nawaloka Hospitals PLC 0.20 0.17 0.15
Lanka Hospitals Corporation PLC 0.03 0.03 0.05 Price Earnings Ratio
Asiri Hospitals 0.27 0.43 0.25 Nawaloka Hospitals PLC 29.06
Ceylon Hospitals PLC (Durdans) 0.18 0.24 0.26 Lanka Hospitals Corporation PLC 22.28
Asiri Hospitals 22.79
Operating Cash Flow Interest Coverage Ceylon Hospitals PLC (Durdans) 15.39
(Times) 2012/2013 2013/2014 9M FY Mar 2015
Nawaloka Hospitals PLC 4.41 3.74 0.48 Net Asset Per Share 31.12.2013 31.12.2014
Lanka Hospitals Corporation PLC N/A NA N/A Nawaloka Hospitals PLC 2.8 2.79
Asiri Hospitals 1.61 2.49 3.76 Lanka Hospitals Corporation PLC 18.09 19.63
Ceylon Hospitals PLC (Durdans) 2.89 2.27 5.04 Asiri Hospitals 5.58 5.16
Ceylon Hospitals PLC (Durdans) 78.26 83.88

Operating Cash Flow Debt Coverage (Times) 2012/2013 2013/2014 9M FY Mar 2015 Market Price Per share as at 3rd March 2015
Nawaloka Hospitals PLC 0.44 0.29 0.03 Nawaloka Hospitals PLC 3.10
Lanka Hospitals Corporation PLC 5.24 5.75 2.66 Lanka Hospitals Corporation PLC 45.90
Asiri Hospitals 0.20 0.19 0.32 Asiri Hospitals 21.30
Ceylon Hospitals PLC (Durdans) 0.43 0.32 0.12 Ceylon Hospitals PLC (Durdans) 110.00